Qatar National Bank QPSC Q1 2021 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Edmond Christou - Bloomberg Intelligence - Analyst : Do you still expect cost of risk to be between 65 to 75 basis points at the upper end in 1Q. I just want to see if anything had changed with rising interest rate in Turkey? And also, could you give me some color on the domestic book in Qatar in terms of staging. I believe most of the staging that happened in 1Q is related to the international market. If you could kind of give some flavor on the corporate in Qatar. The second question is on the margin. We talk about 4 to 5 basis point decline in margin this year. Does it look optimistic to you with rising interest rate in Turkey? And where do you see domestic margin given the yield curve right now?

Question: Edmond Christou - Bloomberg Intelligence - Analyst : Okay. And just a follow-up on the asset management -- the reduction in the asset management. Is this -- what's the reason for this in terms of deposit and loan? And how should I think about in terms of fee generation going forward? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 14, 2021 / 9:30AM, QNBK.QA - Q1 2021 Qatar National Bank QPSC Earnings Call

Question: Aybek Islamov - HSBC, Research Division - Analyst : This is Aybek Islamov from HSBC. Just a couple of questions really. I mean, looking at the first quarter net income, it looks like a pretty good start to this year. When you think about the guidance of net income growth you gave earlier, which I believe it was between 4% and 6% increase in net income. How do you feel about your guidance after you reported first quarter results? That's my first question. Second question is, in your financial statements, you have unrealized translation losses on foreign currency, obviously, given this depreciation in Turkish lira and also some unrealized losses through other comprehensive income on debt securities. How do you think it will evolve? And is there a chance you may recycle some of it in your income statement?

Question: Aybek Islamov - HSBC, Research Division - Analyst : Yes. I also wanted to ask you about net income guidance you gave at the start of the year. I think it was between 4% and 6% for net income growth, EPS or net income. How do you feel about this guidance now that you've reported first quarter results?